D2X, ABN AMRO Partner for Institutional Crypto Derivatives Custody

D2X and ABN AMRO Clearing Partner to Deliver Secure Institutional Crypto Derivatives Trading with Off-Exchange Collateral Management

  • D2X teamed up with ABN AMRO Clearing Bank to offer institutional crypto derivatives trading with off-exchange collateral management.
  • Clients’ digital assets remain in individual, segregated accounts at ABN AMRO Clearing to reduce counterparty risk.
  • D2X operates as a regulated trading venue and recently secured $10 million in investment led by Point72 Ventures.
  • ABN AMRO has past experience with blockchain projects, including digital and green bond issuances, and onchain trading pilots.
  • The partnership reflects a larger trend of banks and crypto exchanges joining to provide secure, regulated asset custody for institutions.

D2X, a cryptocurrency derivatives trading platform, has announced a partnership with ABN AMRO Clearing Bank. The two firms will work together to provide institutional clients with off-exchange collateral management services for trading crypto futures and options. The arrangement allows clients to keep their digital assets in segregated, individual accounts at ABN AMRO Clearing while trading derivatives on the D2X platform.

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The collaboration introduces a collateral model commonly seen in traditional finance. By keeping client assets separate from those of the trading venue, the model aims to minimize risks related to the exchange’s own financial health. D2X, which is licensed as a multilateral trading facility (MTF) under MiFID rules, raised $10 million in its latest funding round, led by Point72 Ventures.

This set-up seeks to address a common need among institutional traders for stronger asset protection and oversight. ABN AMRO integrated Fireblocks’ digital asset custody technology with its existing services, which lets clients view and manage their assets through familiar platforms, benefiting from enhanced security behind the scenes.

ABN AMRO has a record of involvement in blockchain-based projects. In early 2023, the bank registered its first digital bond on a public blockchain, raising about $490,000 for client APOC. Later that year, the bank participated in a $5.4 million green bond issue for Vesteda. It has also run a proof-of-concept using the trading platform 21X, executing onchain trades of tokenized assets settled with stablecoins.

According to the article, ABN AMRO prefers public blockchains, citing their transparency and compatibility with other systems. The bank’s recent projects place it at the forefront of institutional digital asset adoption.

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The new initiative reflects a wider movement by traditional banks to join with crypto trading venues. Similar deals, such as Standard Chartered’s recent arrangement with OKX, show rising demand for secure, regulated custody and collateral solutions for digital assets among institutional investors.

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